F&O expiry: Sensex up 32 pts, ends April series below 50,000; metals shine
Among key sectoral indices, robust global demand lifted the Nifty Metal index to record peak of 4,869 on the NSE today
 "MARKET LIVE: Sensex up 250 pts; Nifty Metal gains 3%; PSBs decline")
8:45 AM
BROKERAGE VIEW :: MOFSL on Tata Communications
CMP: Rs 1,149 | Reco: Neutral
>> EBITDA fell 3% QoQ to INR10.2b (8.3% miss), led by 4.6% decline in the Data segment to INR9.8b, which is partially offset by 80% growth in the Voice segment to INR360m. Voice EBITDA growth was due to a recovery in Voice margin to 6.4% v/s 2.9% QoQ. All EBITDA margin expanded 10bp to 24.9%.
>> Consolidated revenue dropped 3.5% QoQ to INR40.7b (5% miss) on the back of a decline in the Voice and Data segments. Revenue for the Voice segment fell 17.2% QoQ to INR5.6b. Data segment revenue declined 1% QoQ to INR35.2b on longer deal conversion and moderation in UCC traffic.
>> EBITDA fell 3% QoQ to INR10.2b (8.3% miss), led by 4.6% decline in the Data segment to INR9.8b, which is partially offset by 80% growth in the Voice segment to INR360m. Voice EBITDA growth was due to a recovery in Voice margin to 6.4% v/s 2.9% QoQ. All EBITDA margin expanded 10bp to 24.9%.
8:43 AM
BROKERAGE VIEW :: MOFSL on ABB
CMP: Rs 1,383 | TP: Rs 1,565 | Reco: Buy
>> Revenue growth stood at 7% YoY and was 10% below our expectation. EBITDA stood in line with our estimate, with margin coming in higher owing to increased localized offerings and favorable product mix. While the pace of recovery has been a tad slower than expected (exports continue to remain muted), certain segments like Data Centers, Renewables, and Electronics (led by the PLI scheme) have witnessed robust growth and now contribute ~80% to ABB’s business.
>> ABB is a pure play on the long-term industrial automation and ‘Make-in-India’ theme, and stands to benefit from the ongoing PLI-driven increase in manufacturing across the country. We have largely maintained our CY21E/CY22E estimates. While the recent statewide lockdowns remain a concern, we expect a quick recovery in short-cycle businesses. We maintain our Buy rating, with a TP of INR1,565 per share (55x Mar’23E EPS). We expect its premium valuations to sustain in the near term, given the growing opportunity in the Manufacturing space in India.
>> Revenue growth stood at 7% YoY and was 10% below our expectation. EBITDA stood in line with our estimate, with margin coming in higher owing to increased localized offerings and favorable product mix. While the pace of recovery has been a tad slower than expected (exports continue to remain muted), certain segments like Data Centers, Renewables, and Electronics (led by the PLI scheme) have witnessed robust growth and now contribute ~80% to ABB’s business.
>> ABB is a pure play on the long-term industrial automation and ‘Make-in-India’ theme, and stands to benefit from the ongoing PLI-driven increase in manufacturing across the country. We have largely maintained our CY21E/CY22E estimates. While the recent statewide lockdowns remain a concern, we expect a quick recovery in short-cycle businesses. We maintain our Buy rating, with a TP of INR1,565 per share (55x Mar’23E EPS). We expect its premium valuations to sustain in the near term, given the growing opportunity in the Manufacturing space in India.
8:41 AM
Axis Bank in focus
>> Board approves re-appointment of Amitabh Chaudhry as the Managing Director & CEO of the Bank, for a further period of 3 years, w.e.f. 1st January 2022 up to 31st December 2024
8:38 AM
Top stocks to watch today
RIL: Billionaire Mukesh Ambani's Reliance Industries is reported to have held talks with Saudi Aramco on a cash and share deal for sale of a 20 per cent stake in its oil refining and petrochemical arm.
AMCs: Shares of asset management companies are likely to be in focus after Sebi directed the mutual fund (MF) industry that a fifth of the salary of top executives be paid in form of units of mutual fund schemes they oversee. READ MORE
8:36 AM
BROKERAGE VIEW :: IDBI Capital on PowerGrid InviT IPO
Reco: Subscribe
Powergrid Corporation (PWGR) is commencing its asset monetization drive by Invit mechanism from 29 th April to 3rd May. Invit offer size of Rs77.3bn is priced at Rs99-100/unit. PWGR acting as a sponsor has transferred 11 operational power transmission line with an AUM of Rs72bn to Powergrid Invit (POVIT). The entire 11 asset has annuity like revenue with transmission line availability of 98%+. POVIT entails annual net distributable cash flow (NDCF) of Rs10-10.6bn to unit holders over FY22-24. This implies an attractive yield of 11-11.5% versus Indigrid (Sterlite Sponsor) trading at 9.5-10%. For growth in NDCF, POVIT aims to a) acquire remaining 26% stake of the SPV from PWGR, and b) acquire additional asset by raising debt. We recommend SUBSCRIBE to Powergrid Invit.
8:34 AM
BROKERAGE VIEW :: IIFL on PowerGrid InviT IPO
Reco: BUY
View: PGCIL’s InvIT, which houses 5 operating transmission assets, is a good investment option for investors seeking high yield vs capital appreciation. At IPO valuation (Rs91bn), the yield and IRR stand at 12.1% and 9.5%, resp. Successful completion of the InvIT will create a platform for recycling its other operating assets and unlock value for shareholders; stock valuations are even cheaper. We re-iterate BUY. We also see PGCIL’s InvIT encouraging other PSUs such as GAIL, HPCL, and IOCL to follow the template.
View: PGCIL’s InvIT, which houses 5 operating transmission assets, is a good investment option for investors seeking high yield vs capital appreciation. At IPO valuation (Rs91bn), the yield and IRR stand at 12.1% and 9.5%, resp. Successful completion of the InvIT will create a platform for recycling its other operating assets and unlock value for shareholders; stock valuations are even cheaper. We re-iterate BUY. We also see PGCIL’s InvIT encouraging other PSUs such as GAIL, HPCL, and IOCL to follow the template.
8:32 AM
HUL Q4 preview: Brokerages eye high double-digit growth in PAT, revenue
Fast-moving consumer good (FMCG) major Hindustan Unilever (HUL) is expected to post a strong set of numbers for the quarter ended March 2021 (Q4FY21) supported by a lower base and improved traction in the out of home (OOH) and personal care segments. Moreover, consolidation of acquired nutrition business (GSK) could also aid the company's performance, say analysts. READ MORE
8:29 AM
Bajaj Auto Q4 Preview: Analysts fear Ebitda margin fall despite price hike
Two-wheeler manufacturer Bajaj Auto is geared up to report its March quarter results for financial year 2020-21 (Q4FY21) on Thursday, April 29, amid expectations of a solid growth in revenue and sales volume. However, the company’s Ebitda margin could come under pressure due to higher commodity prices and lower product mix on a quarterly basis. READ MORE
8:27 AM
Torrent Pharma in focus
Torrent Pharma gets tentative US FDA nod for Leprosy drug Dapsone
8:20 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:18 AM
NEWS ALERT :: American dollar will be used to buy American Products, says Joe Biden
POTUS Biden mixed economics, patriotism and populism in his speech, saying that his policies will be premised on the idea that everyday Americans should be encouraged to 'Buy American'
8:16 AM
NEWS ALERT :: Joe Biden address Congress
8:14 AM
SGX Nifty hints at a gap-up start
At 8:10 AM, the index was at 14,981 levels, up 137 points.
Topics : MARKET WRAP Markets Reliance Industries Q4 Results Hindustan Unilever Bajaj Auto Markets Sensex Nifty S&P BSE Sensex Nifty50
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First Published: Apr 29 2021 | 7:57 AM IST
